New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-07-31
a DRAFT ON IVES NOT PAID.
HOW THE COLUMBIAN BANK FAILED.


HOW THE COLUMBIAN BANK FAILED.
-. coxxvcr,oy WITH THE NEw-YoRK OPERATOR
am tn HAVE FASTENED THE ASSIGNMENT.
puu ApxLPHrA July 30.-The Columbian Bank closed
~ Acors this morning. and posted notice that by order
of the Board Directors the bank would make an as
alignment At another notice was issued. saying
that tho assignment had been made to 8. Edwin
Mesareee and r. P. Herman, attorneys. All efforts to
obtain any statement to the amount Of liabilities or
assets proved futile, both the bank officials and the
sssIgnees declaring that they had not had time to In
oure into tho condition Of affairs 1t Is believed how
ever. that the failure is complete.
The Press says: 1t has been known for some days that
the Columbian Banks position was rather precarious
one and there have been several to its sus-
pension both here and In NewYork. The canse which
leads up the difficulty Ia The acceptance by the Coum
ban BANK OF the paper Of Henry Ives Co., OF new
York For time past the bank has been dolns OOH
siderable business for Messrs Ives Co. and recently
the acceptances for them amounted TO as inucn 10
100000 ut A time This money. one OF the bank OH
cals said oil Tuesday to Press representative. was
promptly paid We have been doing considerable pusr
ness for Mr. Ives since, he continued, ana we con-
slider that we are amply secured The bank omciais
refsed TO state the of Tvess business with the
bank since the payment Of the 100000 and reiterated
the abatement that the Institution fully protected
Other of the banks s tied In advances Is
sad on drugs and articles OF merchandise from Mexico
81 gentleman In a position to know who is not an
ocia of the bank said that he supposed the Liabilities
would be from $780, 900 $4V0 00O and that the per-
sons who had small deposits In the bank would be
the chief sufferers The effect in NewYork will be to
show concusvely the position Of the Ives party Ed
und d. Mclaughlin, the counsel for the bank said that
when the Farmers and Mechanics Bank threw out the
Columbians checks, the Columbian had $4,000 worth
OF securities Cashier Bradford said that he had
gone TO the aud Mechanics Bank several times
during the day. inquring whether securities that he
was Offering would be accepted for further accommoda
tIon- He continued: . was put Off from time 20 time
until the refusal made known. 1t was then TOO
late might have got the accommodation at Browns
Drexers. have $4,000 In securities now on that
desk The statement that the liabilities will be between
100000 and 100000 is exaggerated Tho question
with us is simply one Of tight assets
president Bell Of the Farmers and Mechanics VINO
was asked reference to Mr.. McIaughlins statement
that the Farmers and Mechanics Bank held $4,000
worth Of the Columbans securities when tho atters
checks were out said: The securities held by
ma were covered by advances already made to the Col
umban Bank except small margin that we always
keep What may be coming 10 the Columbian Bank they
viii receive sorry indeed that they did not have
$50 600 with ia, for would like to have helped them
out Ii would have been just to the stockholders
and depostors OF the Farmers and Mechanics however,
for us 10 have carried their load Securities offered
TO us yesterday but did not think it wise to accept
them Our decision was made known much before 3
O'Clock
1.-THE Columbian has been dealing with the Farmers
and Mechanics since 1t began active business nearly SIX
years ago The account was always considered very
satisfactory one The Columbian generally mad hand
some balance which frequently reached @lo'oOo ana
$4,000. Lately. however. this balance has run very
low and the has been watched by the Farmers
and Mechanics with good deal OF care A few days
ago draft made ny the Columbian Bank on Ives Co.,
OF New York. for $4,000 was not nd when presented
The refusal the Farmers and Mechanics still more
and
President Phillips. Of the Columbian explained that
them any Of excellent security and that the non
payment OF the draft was owing altogether 70 =, "a
contest this explanation but dad not alter It's policy
The Columbian has considerable line Of dcposiiors'
bian Savings Bank In Germantown where MI Philips
and some other gentlemen nlucnt ally connected with
the bank live The savings bank is largely patronzed
by mill operatives and other working people OF Germaa
The charter Of he Columbian was issued In 1911 but
active business not entered on until DE ween nve
by the terms the stockholders are appar
entIy Individually liable double the amount OF their
President Phillips returned from New-York last
night He had been informed Of the turn OF anaaEs by
Ives & Co. Details of the embarrassment had not been
n% D ne
payment of tine $4,000 draft on Ives CO., that APP
and the draft set Oh against firms with the
bank He did not cay in what the 1lnnder consisted
Ives Co. and that there were endeavors In several
directions to pjure them endeayors however he added
strong aud solid, and said tina. the Columbian a Bank
had done deal Of Tor ,, Se sns% tna
the Farmers and Mechanics Bank had refused two or
SoSSaS had ample security deposited with the
Farmers and Mechanics. beyond that drawn upon. he
plans the future as be was not acquainted with al
of the bank last night al his house for an inves
CATION Of the bsnk's affairs"
cto nh ia mi m a
positors. III think you can safely saw ne continued
have mashed their work the depostors will be paid in
full statement will be furnished by the president on
Soa ssve talked over had ample ecu
ties 10 liabilities OF Yesterday but the trouble
few minutes before O'Clock VS. do not care nov to
marns! our securities q these prices, no mr. new
We had had business relations with bim Tor period OF
over years. and he had not been associated with
ives in several of his money making money losing
phia Baseball Club Tho bank Is At present ORGANIZED
W. Steward; assistant cashiers Harper steward and .
J. Bedford directors. Charles L Phillips; " J. sso"p
McCirath John Rogers n. Harper steward The capital
stock s2Voo00 divided Into 1000 shares All paid In
Tue Columbian Bank is private institution, with
reported capital OF 100000 is not member OF the
Philadelphia Clearing House and its cearings were
made by the Farmers and Mechanics its principal
New-York correspondent formerly WAS the American
Exchange Europe. IN the seems
to have transferred the business 10 other hands.
George II stayner OF the firm OF Henry s. Ives & Co.,
said yesterday that failure OF the bank was not due
TO any neglect the part OF the firm. We did not
pay the draft 900 about which much has been
said" he remarked for the very simple reason that 1t
had already paid In Philadelphia. an sorry
that trouble OF any kind for the president
has been friend OF mine for many years have
q letter from him to day in which he eontradicts the
published the failure due 10 fault
on our part. This firm borrowed money from the
bank and does not owe 1t a cent"
STQCRQ